Breakdown or failure of an operating facility ofNextEra Energy Resources, LLC (NextEra Energy Resources) may, for example,prevent the facility from performing under applicable power sales agreementswhich, in certain situations, could result in termination of the agreement orsubject NextEra Energy Resources to incurring a liability for liquidateddamages.The operation and maintenance of nuclear facilities involves inherent risks,including environmental, health, regulatory, terrorism and financial risks, thatcould result in fines or the closure of nuclear units owned by FPL or NextEraEnergy Resources, and which may present potential exposures in excess ofinsurance coverage.* FPL and NextEra Energy Resources own, or hold undivided interests in, nucleargeneration facilities in four states. These nuclear facilities are subject toenvironmental, health and financial risks such as on-site storage of spentnuclear fuel, the ability to dispose of spent nuclear fuel, the ability tomaintain adequate reserves for decommissioning, potential liabilities arisingout of the operation of these facilities, and the threat of a possible terroristattack. Although FPL and NextEra Energy Resources maintain decommissioningtrusts and external insurance coverage to minimize the financial exposure tothese risks, it is possible that the cost of decommissioning the facilitiescould exceed the amount available in the decommissioning trusts, and thatliability and property damages could exceed the amount of insurance coverage * The U.S. Nuclear Regulatory Commission (NRC) has broad authority to imposelicensing and safety-related requirements for the construction and operation andmaintenance of nuclear generation facilities. In the event of non-compliance,the NRC has the authority to impose fines or shut down a unit, or both,depending upon its assessment of the severity of the situation, until complianceis achieved. NRC orders or new regulations related to increased securitymeasures and any future safety requirements promulgated by the NRC could requireFPL and NextEra Energy Resources to incur substantial operating and capitalexpenditures at their nuclear plants. In addition, if a serious nuclear incidentwere to occur at an FPL or NextEra Energy Resources plant, it could result insubstantial costs.

A major incident at a nuclear facility anywhere in the worldcould cause the NRC to limit or prohibit the operation or licensing of anydomestic nuclear unit. FPL Group could recognizefinancial losses as a result of volatility in the market values of thesederivative instruments, or if a counterparty fails to perform or make paymentsunder these derivative instruments and could suffer a reduction in operatingcash flows as a result of the requirement to post margin cash collateral. In theabsence of actively quoted market prices and pricing information from externalsources, the valuation of these derivative instruments involves management’sjudgment or use of estimates. As a result, changes in the underlying assumptionsor use of alternative valuation methods could affect the reported fair value ofthese derivative instruments.

In addition, FPL’s use of such instruments couldbe subject to prudence challenges and, if found imprudent, cost recovery couldbe disallowed by the FPSC. * FPL Group provides full energy and capacity requirement services, whichinclude load-following services and various ancillary services, primarily todistribution utilities to satisfy all or a portion of such utilities` powersupply obligations to their customers. In addition to risks discussed elsewhere, risk factors specificallyaffecting NextEra Energy Resources’ success in competitive wholesale marketsinclude, for example, the ability to efficiently develop and operate generatingassets, the successful and timely completion of project restructuringactivities, maintenance of the qualifying facility status of certain projects,the price and supply of fuel (including transportation) and equipment,transmission constraints, the ability to utilize production tax credits,competition from other and new sources of generation, excess generation capacityand shifting demand for power. There can be significant volatility in marketprices for fuel, electricity and renewable and other energy commodities, andthere are other financial, counterparty and market risks that are beyond thecontrol of NextEra Energy Resources.

NextEra Energy Resources’ inability orfailure to effectively hedge its assets or positions against changes incommodity prices, interest rates, counterparty credit risk or other riskmeasures could significantly impair FPL Group’s future financial results. Inkeeping with industry trends, a portion of NextEra Energy Resources’ powergeneration facilities operate wholly or partially without long-term powerpurchase agreements. As a result, power from these facilities is sold on thespot market or on a short-term contractual basis, which may increase thevolatility of FPL Group’s financial results. In addition, NextEra EnergyResources’ business depends upon power transmission and natural gastransportation facilities owned and operated by others; if transmission ortransportation is disrupted or capacity is inadequate or unavailable, NextEraEnergy Resources’ ability to sell and deliver its wholesale power or natural gasmay be limited.FPL Group’s ability to successfully identify, complete and integrateacquisitions is subject to significant risks, including, but not limited to, theeffect of increased competition for acquisitions resulting from theconsolidation of the power industry.* FPL Group is likely to encounter significant competition for acquisitionopportunities that may become available as a result of the consolidation of thepower industry in general.

In addition, FPL Group may be unable to identifyattractive acquisition opportunities at favorable prices and to complete andintegrate them successfully and in a timely manner.FPL Group and FPL participate in markets that are often subject to uncertaineconomic conditions, which makes it difficult to estimate growth, future incomeand expenditures.* FPL Group and FPL participate in markets that are susceptible to uncertaineconomic conditions, which complicate estimates of revenue growth. Becausecomponents of budgeting and forecasting are dependent upon estimates of revenuegrowth in the markets FPL Group and FPL serve, the uncertainty makes estimatesof future income and expenditures more difficult. As a result, FPL Group and FPLmay make significant investments and expenditures but never realize theanticipated benefits, which could adversely affect results of operations. Thefuture direction of the overall economy also may have a significant effect onthe overall performance and financial condition of FPL Group and FPL.Customer growth and customer usage in FPL’s service area affect FPL Group’s andFPL’s results of operations.* FPL Group’s and FPL’s results of operations are affected by the growth incustomer accounts in FPL’s service area and by customer usage Customer growthcan be affected by population growth. Customer growth and customer usage can beaffected by economic factors in Florida and elsewhere, including, for example,job and income growth, housing starts and new home prices.